Segment Reporting

6 Months Ended

Mar. 31, 2020

We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reportable segments:

•Patient Support Systems – globally provides our med-surg and specialty bed systems and surfaces, safe patient handling equipment and mobility solutions, as well as our care communications platform that delivers software and information technologies to improve care and deliver actionable insight to caregivers and patients.

•Front Line Care – globally provides patient monitoring and diagnostic technologies, including a diversified portfolio of physical assessment tools that help diagnose, treat and manage a wide variety of illnesses and diseases, including a portfolio of vision care and respiratory health devices.

•Surgical Solutions – globally provides products that improve safety and efficiency in the surgical space, including tables, lights, pendants, precision positioning devices and other accessories.

Our performance within each reportable segment continues to be measured on a divisional income basis before non-allocated

operating and administrative costs, litigation, special charges, acquisition and integration costs, acquisition-related intangible asset amortization, and other unusual events. Divisional income generally represents the division’s gross profit, excluding acquisition-related intangible asset amortization, less its direct operating costs along with an allocation of manufacturing and distribution costs, research and development and certain corporate functional expenses.

Non-allocated operating costs, administrative costs, and other includes functional expenses that support the entire organization such as administration, finance, legal and human resources, expenses associated with strategic developments, acquisition-related intangible asset amortization, and other events that are not indicative of operating trends. We exclude such amounts from divisional income to allow management to evaluate and understand divisional operating trends. The chief operating decision maker does not receive any asset information by reportable segment and, accordingly, we do not report asset information by reportable segment.

Effective for fiscal 2020, the allocation of operating costs to each segment was modified to improve the alignment to how management evaluates the performance of each segment. The fiscal 2019 segment information has been recast to conform to the current presentation. The reclassification did not impact our reported Consolidated Net Revenue or Income Before Income Taxes.


	Three Months Ended March 31						Six Months Ended March 31
	2020		2019		2020		2019
Net Revenue - United States:
Patient Support Systems	$	289.3	$	267.2	$	555.9	$	515.3
Front Line Care	179.2		170.2		357.3		336.7
Surgical Solutions	38.0		55.6		75.1		109.5
Total net revenue - United States	$	506.5	$	493.0	$	988.3	$	961.5

Net Revenue - Outside of the United States (“OUS”):
Patient Support Systems	$	92.8	$	92.4	$	170.4	$	185.3
Front Line Care	79.0		72.9		155.5		139.8
Surgical Solutions	44.9		55.9		94.0		111.1
Total net revenue - OUS	$	216.7	$	221.2	$	419.9	$	436.2

Net Revenue:
Patient Support Systems	$	382.1	$	359.6	$	726.3	$	700.6
Front Line Care	258.2		243.1		512.8		476.5
Surgical Solutions	82.9		111.5		169.1		220.6
Total net revenue	$	723.2	$	714.2	$	1,408.2	$	1,397.7

Divisional Income:
Patient Support Systems	$	74.9	$	72.2	$	133.3	$	131.9
Front Line Care	77.7		67.2		151.2		128.9
Surgical Solutions	13.7		15.1		26.5		26.4

Other Operating Costs:
Non-allocated operating costs, administrative costs, and other	70.2		69.7		128.2		123.6
Special charges	8.8		3.5		16.6		11.5
Operating Profit	87.3		81.3		166.2		152.1

Interest expense	(19.1)		(21.8)		(38.5)		(43.1)
Loss on extinguishment of debt	—		—		(15.6)		—
Investment income (expense) and other, net	(11.4)		1.2		(12.7)		1.3
Income Before Income Taxes	$	56.8	$	60.7	$	99.4	$	110.3